The Director of Communications of the Bank of Ghana (BoG), Bernard Otabil, has maintained that the central bank’s decision to revoke the GN Savings and Loans license was based on sound judgement.
He noted that the bank worked closely with GN Bank during its liquidity challenges and after its request to be reclassified as a savings and loan company.
The move he insisted on was to protect the sanctity of the banking sector.
“We tried to take our time with the case of GN Bank. When depositors started shouting all over the country because the Savings and Loans company could not meet depositor withdrawals, it was time to act,” Mr. Otabil said.
“Aside from the reported cases in the media, the Financial Stability Department of the Bank of Ghana received complaints of the company’s inability to pay their deposits on demand. To ensure an orderly exit of the company and protect the sanctity of the banking sector, the company’s license had to be withdrawn in accordance with the provisions of the Banks and Specilised Deposit-Taking Institutions, Act 2016 (Act 930)”.
According to him, the regulator provided details on the various infractions that led to the revocation of the license of GN Savings and Loans Company.
He said GN Bank was unable to meet the new minimum regulatory capital requirement of GHS400 million by the end of December 31, 2018, hence applying to the Bank of Ghana for a reclassification to a Savings and Loans Company.
The BoG, he said, accepted the request.
However, the license of the Savings and Loans Company was revoked in August 2019 when the Bank of Ghana realised that the company still had liquidity challenges with customer agitations and complaints sent to the Financial Stability Department.
By: Rainbowradioonline.com/Ghana
